Reliance Communications Ltd (RCom) has sold its ethernet business to a US-based telecommunications firm GTT Americas LLC for $28 million, it said on Friday.
Reliance Globalcom Services, a subsidiary of RCom, moved its ethernet business to a newly incorporated firm in the US called Onyx NewCo LLC and then sold this firm to GTT.
The ethernet division had revenues of $38.97 million in the year ended 31 March 2016, roughly 1.2% of RCom's consolidated sales.
RCom will get the sale consideration of $28 million in two installments, it said.
This is in line with RCom’s strategy to dispose of assets as it aims to pare down debt.
In October, the company announced that it had signed a non-binding agreement with Canadian private equity firm Brookfield to sell its tower assets.
In September, the company announced a merger of its wireless business with Aircel in an effort to slash back on debt.
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